Market Fundamentals Make Experienced Real Estate Advice Essential for New York Investments

The state of today’s real estate market can differ from neighborhood to neighborhood, let alone market to market. Whether negotiating a commercial real estate transaction in New York, or making a real estate investment, knowing the market and having a New York real estate law firm with the experience to protect your rights can be critical to the long-term financial well-being of any endeavor.

As the Wall Street Journal reports, the college towns of Cambridge, Massachusetts and Denton, Texas would appear to have little in common. Yet both have seen substantial recovery in the real estate market. Using information available through the real estate site Zillow, The Journal determined 25 communities have rebounded nearly to pre-recession levels. However, none of these locations experienced the huge run-ups common in Florida, Nevada and California.Some common indicators are the strength of the employment and rental markets. The healthier communities also have fewer foreclosures flooding the market. New York real estate investment attorneys continue to see terrific opportunity in the market. However, the many competing factors make it more complex than ever; consulting an experienced law firm can help ensure you avoid many of the pitfalls inherent in today’s real estate market.

In other markets, The Journal reports housing prices are not likely to see substantial recovery until 2014.

A big part of the reason is the rising requirement for down payments. Combined with the negative-equity situation of many homeowners; the market is facing headwinds likely to keep it from rising substantially for some time. Many other homeowners are trapped by underwater mortgages, which contributes to a number of complications, including the inability to move for employment.

The heavy involvement of the feds in the mortgage market is another variable that could play a role in the timing of the recovery. Taxpayers have already propped up Fannie Mae and Freddie Mac to the tune of $138 billion. Federal agencies are now behind 9 of every 10 new mortgages. Congress has already increased the size of loans the agency can buy — but such guarantees have been partly to blame for crowding out the private sector. Loan limits are set to decline modestly later this year, from $729,750 to $625,500 in the nation’s highest-priced areas, including New York and Los Angeles.

An additional challenge to the market is simple math: Bundling mortgage-backed securities is not working because interest rates are low and investors are demanding higher returns. The securitization market is critical to the overall health of the real estate market because the banking sector is not large enough to hold more mortgages without increasing its deposit base.